Baku, Azerbaijan, Sept. 12
By Anvar Mammadov – Trend:
The prices decreased by 0.75 percent in Baku’s real estate market in August 2017, Nusret Ibrahimov, director general of the MBA Group consulting company, real estate expert, told Trend Sept. 12.
He added that the prices on land plots, secondary housing and rental housing increased, while the prices on primary housing, rental commercial facilities decreased for the month.
“The price per square meter of secondary housing amounted to 1,570 manats (1.65 percent growth), the price per square meter of primary housing decreased by 2 percent and amounted to 1,334 manats,” he said. “The average rental price of housing in Baku in August was 760 manats, which is by 10.4 percent higher than in late July. The prices for land plots increased by only 0.21 percent during August, and the average price for 100 square meters of land was 19,866 manats, which, by the way, shows the relative stability of the market.”
He said that prices in the market of commercial facilities fell in August.
“Thus, the average price per square meter of commercial facilities was 2,744 manats, which is by 3.99 percent less than in the previous month, the rental price of commercial facilities fell by 3.39 percent - the average price per square meter of commercial facilities of this segment was 12.1 manats,” said Ibrahimov.
The expert noted that compared to the same period last year, prices in the real estate market fell slightly (by 9.82 percent).
He said that during the year, the growth was observed in the secondary housing market, rental housing market and land market, this is while there was a decline in other segments of the market.
“The prices in the secondary housing market grew by 12.04 percent for the year, the prices in rental housing grew 15.08 percent, and the prices in land market grew 0.56 percent,” he said. “In comparison with August of last year, prices on the market of commercial facilities decreased by 29.2 percent, this is while prices for the primary housing and rent of commercial facilities fell by 10.2 percent and 15.73 percent, respectively.”
According to Ibrahimov, the decline in market prices is a seasonal phenomenon, and in autumn the market can regain its positions lost in summer.
“Usually in autumn, after the summer prices decline, there is a slight increase in prices,” the expert said. “I think this trend will continue this year, and in autumn market prices will grow 4 percent.”
Earlier, Ibrahimov said that the prices in the real estate market can increase by ten percent in 2017. The gradual adaptation of the population to the current situation and the restoration of the activity of the Azerbaijan Mortgage Fund (AMF) can contribute to it.
The prices in dollar equivalent decreased by 31.53 percent in Baku’s real estate market in 2016.